Sec 8 Company Registration
Our Price
Market Price : INR 15,500
Our Price : INR 3,999 Only
Savings : INR 11,501
Govt Fees : Inclusive in the price above
Time for Registration : 15 to 20 Working Days
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Section 8 Company
Section 8 Company is a Company that is licensed under Section 8 of the Companies Act, 2013 (the Act), erstwhile known as the Section 25 Company under the Companies Act, 1956, which had the main object; For promoting research, social welfare, religion, charity, commerce, art, science, sports, education, and the protection of the environment or any such other object, provided that the profits, if any, or the other income is applied for promoting only the objects of the company and Also, No dividend is paid to its members.
Therefore, Section 8 Company is a company which is registered for charitable or not-for-profit purposes. This Company is, however, similar to a Trust or Society; an exception is that a Section 8 Company is registered under the Central Government’s “Ministry of Corporate Affairs (MCA)”whereas the Societies and Trusts are registered under the State Government regulations. This, however, has various advantages when it is compared to Trust or Society and it also has higher credibility amongst the donors, Government departments, and other stakeholders. Further, the key feature of this Company is that the name of the Company can be incorporated without using the word “Limited” or “Private Limited” as the case may be.
Elegibility
1. Minimum Number of Partners:
At least two Persons are required to form any Company. So in the Company also, at least two persons are required .
2. Residential Status:
Any person can be Subscriber in the Section 8 Company either resident, non resident, Indian National, or Foreign National. It is also not mandatory that the subscriber should be Individual, it could either be Individual or Body Corporate.
Whereas, only Individual could be Director in the Section 8 Company.
3. Capital Requirement:
Companiies Act, 2013 does not discloses any amount of minimum capital, hence no limit has been imposed on capital.
4. Purpose of Section 8 Company Formation:
Section 8 Company is mostly formed for charitable purpose.
5. Compulsory Clause:
At least one director and subscriber in the Section 8 Company should be Indian Resident who is responsible for the operation of the Company.
Documents for Section 8 Company Registration
Documents and Details Required for Company Registration
(Scanned Copy of Self Attested Documents are required)
Documents Required of Proposed Directors and Promoters:
- Copy of PAN Card of the Proposed Promoters.
- Copy of ID Proof of the Proposed Promoters(VoterID/Passport/Driving License/Aadhar Card).
- Copy of Residential Proof of the Proposed Promoters(BankStatement/Electricity Bill/Telephone Bill/Mobilebill).
- Passport Size Photographs of the Proposed Promoters.
Documents For Registered Office
- Electricity Bill/ Water Bill in the Name of Office Owner
- Rent Agreement & NOC (if office is on rent)
- NOC (If office is self-owned or owned by parents)
Information Required Except Documents:
- Proposed names of the company (Maximum 4 Names).
- Main objects of the proposed company(Brief write-up).
- Designation Description of of the Proposed Promoters.
- Authorised Share Capital of the Company and Paid up capital of the Company.
- Educational qualification, Place of Birth of the Proposed Promoters.
- E-mail ID, Mobile Number and Occupation of the Proposed Promoters.
- Please provide Director Identification Number (DIN) of of the Proposed Promoters, if obtained already. If not, then DIN will be allotted only at the time of Incorporation of Company.
- Digital Signature Certificate (DSC) of of the Proposed Promoters, if available.
Procedure of Section 8 Company Registration
The process for incorporation of a Section 8 Company can be divided into following steps:
Digital Signature
Digital signature certificate must be created and approved by the licensed companies in India, e.g Vsign, Emudhra, Sify, etc. It is mandatory for the acting director and for nominee both. Application for DSC would require passport size photos of the applicant, identity proof and address proof.
Name Availability
Application for name reservation can be submitted to the MCA. Upto 2 names at a time can be applied which further could be rectified one again if not approved I the first time. The name should comply the norms for name approval guidelines.
Incorporation
After obtaining name approval, incorporation application is required to be filed to the ROC on mca.gov.in. I requires multiple details and documents e.g Spice Part B, Memorandum of Association (MOA), Articles of Association (AOA), INC-9, Agile Form. Further, the identity proof, address proof and residence proof of the member and nominee would be required. In addition to the MOA, AOA, identity proof, address proof, other incorporation documents like affidavits and declaration of the sole promoter must be submitted.
On filing for incorporation, approval is granted by the Registrar of Companies (ROC). In case there are any issues with the documents submitted, the application for incorporation can be resubmitted.
Benefits of Section 8 Company Registration
Advantages of a Section 8 Company
A Section 8 Company is the registered for charitable purpose with the benefit of limited liability, perpetual succession etc. Besides, limited liability and minimal statutory compliances, Section 8 Company offer the following advantages:
Separate Legal Entity
An entity means something which has a real existence; a thing with distinct existence. A company is a legal entity and a juristic person established under the Act. A juristic person is a person who is not a natural person or human being. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts. Hence, a pvt ltd company is a legal entity separate from that of its members.
Perpetual Succession
A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership. Perpetual succession is one of the most important characteristics of a company.
Limited Liability
Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company’s debts is limited. In other words, the liability of the members of a company is limited only to the extent of the face value of shares taken up by them. Therefore, where a company is limited by shares, the liability of the members on a winding-up is limited to the amount unpaid on their shares.
Owning Property
A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern. The shareholders are not the owners of the company’s property. The company itself is the true owner.
Capacity to sue and be sued
To sue means to institute legal proceedings against or to bring a suit in a court of law. Just as one person can bring a legal action in his/her own name against another in that person’s name, a company being an independent legal entity can sue and also be sued in its own name.
Frequently Asked Question
Any person or an association of persons intending to register a limited liability company for objects specified below can opt to apply for registration of Section 8 Company.
The following have to be proved to the satisfaction of the Central Government that:
- its objects includes promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;
- the company after incorporation intends to apply its profits, if any, or other income in promoting such objects only; and
- the company intends to prohibit the payment of any dividend to its members.
Section 8 Company may be incorporated as a company limited by shares or by Guarantee (with or without share capital).
Yes. As per rule 8(7) of the Companies (Incorporation) Rules, 2014, for the Companies under Section 8 of the Act, the name shall include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust and the like etc.
Rule 19(2) of the Companies (Incorporation) Rules, 2014 provides that the memorandum of association of the Section 8 Company shall be in Form No.INC.13. Review of Form INC 13 clarifies that a memorandum of association of a Section 8 Company may inter-alia provide for the doing of all such other lawful things as considered necessary for the furtherance of the objects for which the company has been incorporated.